UMASS/AMHERST 


315DbbD0SlSflD^S 


APPLE     INDUSTRY  OF  THE  U.S. 


D.  H.  &ORE 


LIBRARY 

OF  THE 


MASSACHUSETTS 

AGRICULTURAL 

COLLEGE 


SOURCE-    '^fi.i  ai^sK. 


363 
G67 


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SOME  UTTERBSTIffG  ASPECTS 

OP  THE 

APPIS  INDUSTRY 

OP  THE  UWITT5D  STATES 


4  3-^.2   It 


BIBIIOGBAPHY. 

BOOKS. 

How  to  Grow  and  Market  !Pruit. 

Harrison  Mua^series,  Berlin,  ltd. 

Paddock  and  Whipple.   Ibruit  Growing  in  Arid  Eegions. 

Waugh,  F.  A.   The  American  Apple  Orchard. 

Orange  Judd  Go.  ,  !T.  Y.  ,  1908. 

Waugh,  F.  A.   "Pruit  B&T'vestlna^  ^   Htorini?;,  Marketing. 
Orange  Judd  Co. ,  N.  Y. ,  1901. 

P"f:piobicals. 

Teal,  J.  H.    The  Influence  of  Panama  Canal  and 

Navigalale  Rivers.   Better  l^ruit.   5'e'bruary,  1914. 

HTLISTIi^S  AWD   REPOBTS. 

Orchard  Management. 

Oregon  Agricultural  College  and  Sxperiment 
Station.   Gornwallis,  Oregon. 

Oregon  larmer. 

Oregon  State  Iraiaigration  CoEmission. 
Portland,  Oregon. 

How  Sod  affected  an  Apple  Orchard. 

Bulletin  No.  314.   'I.  Y.  Agricultural  Experi- 
ment Station. 


Atwell ,  Homer  C.      Co-operation  Among  Fruit  Growers. 

Does  an  Orchard  Need  fertilizer. 

Bulletin  Mo.  339.   N.  Y.  Agricultural  -pxperi- 
Bient  Station,   (reneva ,  -J.  Y. 

Fletcher,  S.  W.   Three  Problems  in  Virginia  Fruit 

Growing.   Presented  at  the  stuumer  meeting  of 
the  Virginia  State  Horticultural  Society. 

July,  1913. 

Gilbert,   H.   M.      "Prom  Pruit  Grower   to  Consusier.      Pro- 
ceedings  of  the  9th  annual  meeting   of   the 
Washington  State  Horticultural  Association. 

January,  1913. 

Gould,  H.  P.   Some  CoEaments  about  Present  Status  of 
the  ?ruit  Industry. 

Report  of  the  IF^th  annual  session  of  the 
Virginia  State  Horticultural  Society. 

February,  1911. 

Kains  ,  M.  F.   Go-operation. 

Report  of  the  20th  annual  meeting  of  the  Wsst 
Va.  State  Horticultural  Society. 

Loomis,  E.  P.   The  Sulzer  Grading  and  Packing  Law. 
Report  of  the  17th  annual  session  of  the 
Virginia  State  Horticultural  Society. 

March,  1913. 


Waggoner,   G.    J.      The  Benefit  of  Advertising, 
Waugh,  "P.    A.      Can  We  ?;ell  Our  Apples. 

COBRESPOWDSUCT ,   with 

Department   of  Afrriculture ,   Ottaisra,   Canada- 
Department   of  Apiculture,  Washinitfton ,  D.    C, 

International  Apple  Shippers'   Association. 

Rochester,  Mew  York. 

Massachusetts  Agricultural  College. 

Amherst,  Mass. 

Missouri   ntate   iioard   of  Horticulture. 

North  Pacific  Fruit   Distributors. 

Spokane,  Washington. 

Horthwestern  Fruit  Exchange. 

Portland,   Oregon. 

UniTersity   of  J«lissouri. 

Coluiahia ,  Missouri  . 

University  of  Wisconsin. 

Madison,  Wisconsin. 


0  U  T  L  I  N  1 


A.    THR  BAISITTG  OF  APPLES. 


1.  Development  of  Scientific  Methods. 

2.  Varieties. 

3.  NuBibsr  of   Trees   and  size  of  product 

4.  Legislation. 

a.  Crop  Pest  Law. 

b.  Sulzer  Bill. 

B.  THR  MAHOTITTG  OP  APPL-RS. 

1.  Co-operative  Organizations. 

a.   Eastern. 
Id.  Western. 

(1)  N.  P.  F.  B. 

(2)  n.   p.  1. 

(3)  I.  A.  S.  A. 

2.  The  Markets. 

3.  Exports. 

C.  THE  OUTLOOK  POR  TIIS  FUTURE. 


SOMi:  IlfTEBTilSTIHG  ASP"R!CTr?   Ol?  THl  APPLE  ITOUHTRY 
OV  TFR  UITITID  STATES . 

A  survey  of   the  apple   industry  of  the  United.  States 
is  a  large  and  comprehensive   subject.      To  attempt   to   sumiaarize 
in  a  few  pages  what  has  as  yet  not   even  been  done   in  book  form 
would  be  an  impossibility.      Books  and  articles  have   been  m^itten 
on  different  phases  of   the   subject,   but   the   task  of  making   a 
coiuplete  survey  of  the  industry  is  as  yet  undone.      It  is   a  sub- 
ject  that  would  cover  practically  the  whole   country,   one   on 
Tffhich  it  is   difficult   to  obtain  accurate  information,  and  one 
vhich  is  changing  continually.      Some  aspects  of  it,  hov/ever, 
are   of   special   interest   to  the   consumer  who    considers    the   apple 
part  of   the   normal   diet,  and   yet,    on  account   of  present   prices, 
rather  a  luxury.      Such  information  as  I   have   acquired,  and  more, 
is   f?ladly  furnished  by  the  Department  of  Agriculture  at  Wash- 
ington,   the   ntate  Experiment   Stations,    the   State  Horticultural 
T^ocieties,   and   the   co-operative  organizations. 

There  is   probably  no  branch  of  agriculture    that   has 
developed  in  the  past  20  years  under   such  impetus   as  has  the 
fruit   industry.      50  years  ago    the   small   quantity  produced  was 
largely  used  for   the  manufacture   of  wine   and   cider,   but   now 
fresh  and  canned    fruit  are  aaonn:   the   staple   articles   of  dietV 
[This  great  advance   in  cc/mnercial   fruit  growing,   and  especially 
commercial  apple   arrowing,   is   largely  due   to    the   extended  use 
of   scientific  methods.      As   long  as   little   care  was    taken   of   the 
trees,   people  did  not  rish  to   eat    the   unattractive  diseasedA 


-2- 

fruit.  Within  those  20  years  great  strides  have  been  taken 
until  now  the  apple  as  we  buy  it  is  much  nearer  perfectl^All 
apples,  however,  are  not  perfect,  and  what  the  growers  are 
working  hardest  for  now  is  to  attain  the  level  where  all  apples 
shall  be  free  from  disease  and  blemish,  and  of  fine  color  and 
shape,  and  properly  packed  and  sold  at  a  moderate  price. 

The  operation  of  spraying  for  insect  pests  and  fungus 
diseases  has  been  almost  universally  adopted  in  a  remarkably 
short  time,  more  so  in  the  Bast  than  in  the  West  where  these 
pests  have  not  been  allowed  to  gain  xauch  headway.   The  West 
^las  used  prevention  and  the  i^ast  has  h^d  to  use  cure  and  pre- 
vention. Experiment  stations,  especially  in  Hew  York  State, 
have  }aade  many  experiments  on  the  culture  of  apple  trees  and 
their  reports  have  greatly  aided  the  growers.   As  a  result  of 
one  set  of  plantings  Hew  York  showed  that  in  the  average  soil 
coiamercial  fertilizers  are  not  necessary,  if  tillage  and  good 
care  are  the  rule,  and  occasional  doses  of  stable  maniire  %&  cw~s\ 
cover  crops  are  f^iven.   The  reason  given  is  that  trees  grow 
slower  than  field  crops  and  take  up  more  crater  and  consequently 
more  material.   Also  only  a  sraall  part  is  removed  in  the  fruit, 
and  the  leaves  return  to  the  ground  again.   By  good  tillage  and 
the  solvent  action  of  the  decaying  crops  the  unavailable  material 
in  the  ground  is  made  available.   Where  fertilizers  are  needed, 
the  ground  is  usually  unfavorable  in  other  ways  also ,  and  fail- 
ure will  often  result.   Similar  comparative  experiments  showed 
that  tillage,  besides  making  food  available,  supplies  the  tree 
with  water  by  preventing  evaporation.  Many  trees  do  grow  well 


-3- 

in  sod,  but   not  becaiise  of   it,   but   in  spite  of  it.      Othei'   ex- 
periments  showed  that   field  crops,   a  small  portion  of  ViChich 
are  plowed  under,   can  be  grown  aiaong   the   ti'ees  and  thus  pay 
for  the  use  of  the   land  until   the   orchard  is  bearing,  and  also 
benefit  the  trees.      The  West   uses   these  cover  crops  very  ex- 
tensively.     These   tests  are  all  made  to  aid  the   growers   in 
raising  their  fruit  in   the   best  and  most   economical  way.      A 
tree  is  pruned  to  make   it   shapely,  so   that    the    sun  can  get   in, 
so   that   thorough  spraying   can  be  done  ,   so   that   the  fruit   can 
be  gathered  easily  and  to  remove  diseased  wood.     Most  of  the 
best  orchards  do  hand  picking,  and  sorting  and  packing  by  hand 
or  machinery.      5^uit   growers  do  not  agree  as   to   the  best  methods 
of  spraying,  pruning  or  picking,  but  they  do  af-ree   that  some 
good  laethod  is  necessary  and  it  must  suit  their  orchard  and  its 
location. 

;  Most  people  would  be  surprised  to  know  how  many 
varieties   of  apples   there  are.      The  U.    H.    Department   of  Agri- 
culture has  published  a  bulletin  containing   the  naiiies   of  the 
known  varieties  referred  to  in  American  publications  from  1304 
to  1904.      This   list   contains  approximately  14,800  names,   of 
which  6,700  are  distinct  varieties,   the  remaining   8,100  being 
synonyms.      Soraetiaes   one  variety  will  have   40  naaes.      Besides 
this   list   there  are  given  375   accredited  varieties   of   crab 
apples  with  225   synonyms.      At  present  the  American  Pomological 
Societies'  reconmended  list  contains   319  varieties   of  apples 
and  32   of   crab  apples.      Of  these,   about    ten  varieties  probably 
constitute  75    -  90^  of  the  comriercial  apples,   and  they   are  all 


-4- 

varieties  over  50  years   old.      Such,  fatiiliar  names  as  Baldwin, 

Ben  Pavis,   Jonathan,  Northern   Spy,   Trreening  ,  and  Yellow  Mew- 

— 1 
tovi'n   "H-reet  us.;      As  yet   the   di.^ferent   states  do   not   produce 

special  varieties  although   the  West   does  not  attempt  Eastern 
ones.      The   growers  are  anxious    to  produce  more  specialization 
as  to  varieties,  and  yet  it   is  for   their  "benefit   to  raise  both 
winter  and  siinuuer  varFStios ,   thus  distrihuting  their   labor. 
With  a  snail   number   of  varieties   on  sale  the   consmaer  could 
easily  learn  what  she   likes  and   its   season. 

.^_™„„      Burlnf?   the  period  from  1890   to   1900  apple   growing 
took  its   biggest  jump.      It  was  during  this  decade   that  spraying 
was  beini?   universally  adopted,  and  the   number  of  apple    trees 
in  bearing  increased  68/.      In  1900  of  the   total  minber   of  fruit 
trees  reported,   55€  were  apple    trees   and  they  produced  B3f'  of 
the   total  number  of  bushels   of   fruit.      In  1896  we  had  our   record 
crop  of  207,000,000  bushels  of  apples.      Such  a   year   as  this   in 
R'hich  all  regions  produce  a  full   or   normal  crop  is   exceptional. 
Since   1900   the   number  of   trees  and   the   production  has  been  fall- 
ing  off  in  spite   of   the  great   extension   of  apple   orchards.      In 
1910  the   census   figures   showed  a  decrease  of  33. 4^  in  acreage. 
This   decrease  is   probably  due    to   the  cutting   down  of   the  poorer 
orchards   to   give  way  to   other  products  and   to   ne?^   ti"ees  which 
have   not   yet  borne  fruit.      While   the   niaaber  of    trees   decreased 
about   50,000,000  as   compared  with   1900,    the   number  of   trees   not 
yet  bearing  was  about   65,000,000.      While   in   1839   the  production 
was   143,105  ,f>89  bushels,   it  rose  in  1899   to   175,397,600  bushels, 
but   fell   in   1909   to   147,522,313  bushels.      It  seems   to  be   still 


falling  for   in  1912  it  if?aR  only  about  120,000,000  bushels. 

What   ihe   effect   of   these  new  acres   o£  scientifically   set   out 
trees  »111   be  remains    to   be   seen,    but  a  rise   in  proauction  is 
generally  expected. 

There  seeas   to   oe  mora  specialiaation  now  as   to  which 
•parts   of  the   country  shsll  r&lss  apples,   altho   ©very  ar^te   has 
Bome  &ppl9    trees.      Zet   us  coapars  &  few  of   the  steites.      The 
1890,    1900,  and   1910  censuses  give  the  production  of  apples  in 
the  year  precaedlng  ,  and  this   of  conree  raay   be  affected   by 
yeathar-  conditions,  "out  is  as  accurate  as  such  figures  ever  can 
he.      Talc*  Ohio,  vrhich   in  1689   led,  in  the  nisiber  ot  bussheis  pro- 
dtjced,   in   1899  was   thirfe  in  rank  ano,   in  1909  was   tenth.      I'hea 
l0w  York  ^hich   in   18S9  «a3   ssTenth,   in   1899  4©.  1909  -was  first, 
in   the    latter  year  protiucing  25,409,324   buBhels,  which  was 
t^-ice  as  rnxjch  as  ki Chilean,  which  came   next  «?ith  its  12,532,296 
huehels.      Home   of  the  States,  as  Iowa,    ahov?  a  fe-K-sr   na'ai>er  of 
trees   in  1910  than   in  1900  but  a  production   t*»ice  as  large. 
Oregon  and  I'/ashington  more  than  <ioubiea   their  production  with 
about   the   sojiie  mimher  of   trees,      ihe  yeeld  ohtainsd  seeas    to 
have  little  relation   to   the  actual   numlier  of    trees.     .Missouri 
leads   in  the  nuciDer  of    oearing    trees  in  1910   uut  coaies   fourth 
in   the  nmaber   of   bushels  produced.      Sew  York  hati  5,000,000   less 
trees  but   producsd  15  ,000 ,000  raore    bushels.      This  shovAs  pretty 
well    tha   diffarenca    between   orchartts  where    scientific   methoes 
are   s^.sed  and  '#h«rfl!   they  ars   not.      The  Missouri    State    -lorticul- 
tuTlst   considers   that  80>'  of    the   orch&ros  in   that   state   had  no 


-6- 

scleatific   care  and    the    other   205''  only  sli(?;ht.      It   is   the  middle 
^est  and  West  which  are   setting  out   the   large  numbsr   of   trees. 
Virginia,  West  Virginia,   i'few  York,   and  Pennsylvania  ars    the 
only  Eastern  states  which  have    so   far  considered   the   apple  as 
important   conEaercially,  altho   some    of   the   small   states  have   a 
large  number   of   trees   compared  to   their  area,      Massachusetts 
has  its    orchards   out  they  are  decreasinp   in  number  and    in  pro- 
dtiction.      The  States  which  le^d   in  products   in  1909  v/ere   'few 
York,  Michigan,  Pennsylvania,  i^issouri  ,  PCentucky ,   lov/a,   and 
Ohio.     Washington  and   Oregon  do  not    stend  high  in   theii*  product 
at   present,   but   it    is  high  compared   to    the   nuxiiber  of    trees, 
and.  they   each  had  in   1910  as  raany   trees   a^ain  not  yet    of   bearing 
age.      In  an  average  axade  by  the  IJ.    S.    l')epartment   of  Af'^ri culture 
of  a  possible   full  crop,   Oregon   in   1912   had  96f^  of   quality  and 
82'^  of   quantity,  and   in   1913   98^?  of   quality  and   100/'  of   quantity. 
This  was   the  hir;hest  percentafre   ever   obtained  in  any   section. 

The   size   of   the  apple   orchai'ds  varj'^   in  different 
states  and.  v«ithin  a  state.      In  Oregon  and  Virginia   they  average 
from   5   to   500  acres.      In  kissouri    the   average  size   of  14,645 
orchards  was  8  acres,   but    there  were   83   of  over  100  acres.      The 
largest   orchards   reqt^ire  a  great   deal   of   care  and  are   usually 
those  owned  by  ri^li  business  men  and   corporations.      Those  of 
about   30  acres  are   the  most   convenient   size  and  p-ive  an  incoiae 
under  scientific   care   of  anjrwhere  from  .flOO  to   |800  an   acre./ 

There  has  been  very  little  legislation  in  this  country 
concerning  the  apple  Industry.  The  different  states  liave  passed 
a  few  laws  about    spraying.      Virginia  v^-as   one   of  the  first,  with 


-7- 

its  Crop  Pest  Law  in  the  earlj''  nineties,  v'hich  has  been  the 
■basis  for  similar  laws  in  a  number  of  states.   It  has  contrib- 
uted more  to  the  development  of  coiojuercial  fruit  growing  in 
that  state  than  almost  any  other  factor.   The  basis  is  nursery 
inspection  and  the  inspection  of  orchards.   The  inspector  can 
order  diseased  trees  cut  down  if  the  grower  will  not  spray  theiii, 
but  this  compulsory  treatment  is  seldom  enforced.   It  is  in 
fact  seldom  needed.   The  law  works  thoir  education  Ijy  the  in- 
spectors of  the  nurseryiien  and  f^rowers,  and  has  proved  that  it 
is  "better  to  lead  than  to  drive.   The  eastern  laws  are  not  as 
drastic  as  the  western  ones,  out   the  western  ones  suit  r.heir 
conditions  and  v-ould  not  fit  ours.   They  are  largely  to  prevent 
the  introduction  of  pesta,  hence  must  oe  more  drastic.   Our 
eastern  laws  were  frained  i^ith  full  recognition  of  the  fact  that 
nearly  all  serious  orchard  pests  are  now  spread  throughout  the 
SJast ,  and  the  only  sensible  recourse  is  to  educate  the  growers 
to  cope  with  the  pests  themselves,  coupled  with  thorouf.-h  in- 
spection of  nurseries,  the  chief  eentrea  of  dissemination.   The 
principal  national  law  is  in  regard  to  packing.   The  standard 
pack,  however,  is  not  oblif^atory  unless  the  stencil  "U.  S. 
Standard"  is  used  on  the  packa/^e.   Although  the  law  allows  many 
loopholes  in  its  vs or dlnp; ,   it  is  a  step  in  the  rigrht  direction 
for  a  well  packed  box  or  barrel  of  good  cjrade  apples.   It 
teaches  the  grower  how  apples  should  be  sold.   The  size  of  a 
standard  box  and  barrel  are  fixed,  and  the  size  of  the  apples. 
The  ""firsts"  must  be  more  than  2^-   inches  in  diaiaeter  if  large 
ones  and  2  1/4  inches  if  si^all  ones.   Then  each  grade  below  is 


-8- 

l/4  inch  less.   This  does  not  require  th-at  they  shall  all  oe 
Z\   inches,  but  that  is  the  minimura  for  that  grade.   Color  has 
not  usually  been  considered,  but  this  law  asks  for  good  color 
and  uniform,  throuf^hout  the  barrel  or  box.   The  apples  must 
rank  95S  perfect  as  to  shape  ,  color  ,  SBioothness  and  freedom 
frora  bruises  and  disease,  ^iany  new  grading  and  sizing  machines 
are  now  on  th.e  niarket ,  which  when  used,  leave  the  packers  free 
to  watch  the  apples  as  they  go  along  for  blemishes  and  poor 
color.   The  more  n;enerally  this  pack  is  used,  the  higher  will 
be  the  grade  of  apples  on  the  market.   The  East  uses  the  barrel 
almost  v-'Yiolly ,   and  the  West  the  boxes.   With  the  growing  dauand 
for  more  house  space  boxes  will  be  more  generally  used  because 
they  take  up  less  room  ana  can  be  purchased  as  needed.    The 
average  box  contains  about  one  bushel  but  is  not  sold  that  way 
but  by  the  actual  number  of  apples.   The  average  barrel  contains 
about  three  bushels. 

The  Apple  Industry  consists  of  t^o  parts.   The  first, 
which  we  have  .just  dealt  with,  is  the  raising  of  fine  fruit  and 
the  packing  it  suitably  for  market.   The  second  part  lies  in 
the  distribution  of  that  fruit  in  such  a  careful  and  intelligent 
way  that  it  will  bring  back  to  the  producers  the  greatest  value 
possible.   One  of  the  biggest  problems  to-day  is  this  proper 
distribution  of  the  apple  crop.   Every  year  there  is  a  heavy 
rush  of  apples  onto  the  raarket  during  September  and  October  , 
giving  the  speculators,  who   can  store  them,  an  oppoi'tunity  to 
make  profit  at  the  expense  of  the  grovfers.   If  those  apples 
could  be  stored  until  needed,  the  overflowing  of  the  market 


-9- 

woxjsld  "be  avoided.      A  better   territorial   distribution  would  be 
still  more  valuable.      The   entire   coEimercial   output   is   shipped 
to  a  few  large   cities,  w-here  it   is   stored  and  reshipped  as   it 
is   ordered.      As  a  result   it  is  never   spread  very  widely   and 
many  regions   do   not   know   the  apple.      If  the   crops  were  shipped 
directly  to  the   different  parts    of  the  country  without   using 
the   central  markets,    the  area  of  apple   consumers   could  be 
doubled.      It   is   easily  seen   that  what   is  needed  for   these  fair 
returns    to   the  frxower  and  a  wider  market   is    co-operation  ataong 
the  growers.     Within  the   last  few  years   this    has   been   developed, 
to  a  considerable   extent,    ■sspecially  in  the  West.      In   the  East 
it   has   not    spread  very  widely  because  the  grovrers   have   easy  ac- 
cess  to   the  market  and  can  g-et  pood  prices  without   co-operation. 
The  Ifastern  l^uit  Growers'   Association  devotes  most    of   its 
energies   to    legislation  and  freight  rates.      In   the  }?a.st  most 
selling   orfjanizations  have  failed  because    the  inembers  do    not 
work   for   each  other.      The   lart?:e   stock-holders   try  to  make  money 
out    of  the   smaller   ones.      It   is  >iard  to   organiae  an  association, 
to  find   the  rinht  aian   to  nianage   it,   to  make   it  strong   enough 
to  fight   the  buyers  who  are  already  organized,   but   chiefly    to 
get   the  fanaere    to   stick   together.      In  every   case  where  a  far- 
mer's  exchan'?e   or  association  h^s  been  foriT^ed  and   succeeded,   it 
hjas  been  because   the  fanners   have   been   forced   to   get   together. 
Without   organization   the   growers  have   little  knov'ledp^e  of  the 
market  and   are  dependent   on  the  coiamission  men.      If  the   i?:rowers 
hear   that  prices  are  hig^h,   they  ship  and  niay  flood   the  market 
and   get  low  prices  frora  the  wholesalers.      To  succeed   there  must 


-lo- 
be  sizeable   shipment s   to    the  market   continually  and  not 
apasHHodically.      If  the   growers  agree   to   sell   through  the   associa- 
tion and  then  sowe   don't,   the  association  will  fail.      A   strong 
advantage  in  an    organization   is   that   it   can  establish  packs, 
crates,  and  brands   for  all  the  members.      Hear  MorfolJc,  Va. 
there  is   a  farmer's   exchange  which  is  very   loose   in  organiza- 
tion but   it   has   succeeded.      It   tells   its  menibers  which  commis- 
sion men   to   ship   to   in  each  city  and  then   every  day  reports  on 
the  conditions  in  those  cities,  and  in   that  way  directing   the 
shipaents  more  or   less.      Other   organizations   have   everything 
shipped   through  them  and  hold  themselves  responsible.      If   the 
same  comiaission  men  are  always   traded  with  they  will  usually 
co-operate  with   the   grower  or   the  association,  but  an  associa- 
tion is   better  able   to  resulate   the   supply,   and  deinand  fairness 
than  an   indivixiual   is.      The  last  as  a  whole,   however,   has  few 
organiaations.      Practically  all   states  have   Horticultural 
societies  but    they  spend  most   of  their   time  in  discussion. 

In   the  West   co-operation  has   spread  widely,   especially 
in   the  Pacific  North  West.      It  has  been  applied   to    the   selling 
of  almost   all  products,  as  the  markets  are  usually  at  a  distance. 
In  Montana,   Idaho,  Washington,   Oregon  and  British  Columbia   there 
are    175   organizations   and   45   of  these  are   in  Washington.      If  it 
were  not   for   these,   apples   could   not  be   shipped  East.     Most   of 
the  larger  associations   are  composed  of  small   local   ones.      Most 
of   the   organizations  limit   their  membership   to  apple   growers, 
and   limit   the  amount   of   stock  each  may   own  ae^  t.heir  voting 
power.      A  capital   is  always  x'equired  in  order  that    the  output 


-11- 

may   be  held  laack ,   if  desired,  foi'  a  year.      As  a  rule   the   growers 
contri^oute   the  fruit   and  wait  for   the  returns.      They  treat   the 
association  as    the  "business  end  of   their  orchards.      Soxes, 
paper,    spray  materials,   etc.,    can  he  bought   in  large   quantities 
from  the   cheapest   source  and  sold   to   the  members  at  reduced 
cost.      Chare-es   for  handling  are  placed  at  such  a   figure  per 
box   that   it  pays   the  general  running   expenses.      Such  an  organi- 
zation is   the   Cashmere  Fruit  Growers  Union  in  Washington,  which 
has  about   100  members. 

The  Hood  Biver  Organization  was   the  first  fruit 
growers  association  of   the   northwest  and  was  formed   in  1893. 
Now   the  Horth  Pacific   ?'ruit  distributors    handle  most   of   the 
fruit   of   that  valley.      It  has  been   estimated  that    that   corpora- 
tion handles   40'^"  of   the  product   of  Washington.      It   is   organized 
into   109   locals  which  are  .p-rouped  into  8   sub-centrals  and   these 
are  united  in   the   Llstributors.      It  is   purely  co-operative  and 
is   owned  and  controlled  by  the  growers,  who   elect   the    officers. 
They   contract   their  crops   through  the   locals  and  so    to    the  Dis- 
tributoi-s.      This  association  deals  with  every  variety  of  fruit 
in  the   "Northwest.      It   has  established  uniform  grade  and   pack 
which   is    strictly   enforced.      Every  member   has  his   crop   estimated 
and    inspected  in  the  field  and   in   the  warehouse   by  the   local 
inspectors.      It   Ib   again  examined  by  the  sub-central  and  finally 
\)y  the  inspectors   of  the   Distributors  who  go   the  rounds  of   the 
sub-centrals.      I!ach  grower  markets  his   fruit  under  his   trade 
name  and  pays   the   organization  fl5   a   carload  for   its  services. 
It  is   simply  a  selling   orpranization ,   but   it   can  get  correct 


-12- 

estimates   of   the   crops  and  daily  reliable  inforuiation  of  the 
markets,    thus   regulating   the   supply  and   taking   all   the  responsi- 
bility off  the   grower. 

The  iJorthwe stern  T'riiit  .Exchange   is  an  association  for 
a  similar  purpose  but  has  a  different   organization.      It  vras 
started  in  1910  and  is  a  corporation,  although  a  growers  agency. 
The  aembership  is   of  asBociations ,   not   individuals,    of  which  in 
1912   there  were  30.      There  is   no  meiiibership  fee,    but   shares  may 
be  bought   by  growers.      Nine   directors  have   general  oversight 
and  a  growers'    council  composed  of  one  representative  from  each 
association,  laeets  and   co-operates  with  the   directors,  ??iving 
estimates  as   to   the  prooable   crops,   etc.      It  charges    |;.10  on 
all  f.    o.    b.    sales,  "but   any  B^ssociaiion  rtiay  sell  outside  and 
retain   1/2    the   £.10   selling  charge.      Also   it   can  refuse   to   sell 
at   the   price   the  Exchange   offers.      So  far   no  dividends  have   ever 
been  paid   on   the   sliares.      The   Exchange  substitutes  a  trained 
sales   organisation  for  a  too   frequently  untrained  sales  manager. 
It  realized  that  in  order  to  know   the  destaand  of   the  markets 
there   should  be  a  resident   salesman   in  each  city.      In   order  to 
meet   this   expense   it   united  with   other  non-competing  organiza- 
tions  in   the   country   tc   hire    their   salesman  and  formed  the  fJorth 
American  T'Yuit   Exchange.      In   January,   1915,   this   system  had  123 
branch   offices  and   employed  229  markets  in  the  United  States, 
Canada,  Siirope  and   the  Orient.      The  Exchange   la:ys   great   stress 
on  f.    o.    b.    sales.      This   is  better  for  both  the  ,Q;rower  and  the 
buyer.      Under  this   system  the   fruit   is   sold  before  pickea  and 
there   is   less  anxiety.      When    the   buyer  purchases   in   this   way  he 


-13- 

"has  from  one    to   three  weeks   to   plan  for   its  disposal  and  so   it 
is  worth  more   to   him.      It   is  also   v?orth  more   to   the  grower   be- 
cause all  the   deniand  is   still  arailable  as  a  saarket.      This  ad- 
vance listing   of  goods   saves   time,  and  the  grower's  responsi- 
bility ends  when   the   cars   a:^-e   loaded.      In   1911  the  Exchange 
averaged  24  days   between  shipment  and  pajmient   for   every   car 
handled,  and  for   one  association  75^^  of  its   output  was   sold 
prior   to  harvest. 

The  International  Apple   Bhippers  Association   takes 
up  the  question  froiii   the  wholesaler's  or   commission  men's   side. 
It  was   organized  in  1895  with   50  members  which  had  increased 
this  j'-ear  to    550.      Its   object   i^'as  not    to  affect  prices,   but    to 
furnish  reliable  and  accurate  infoiination  to   its  merabers   con- 
cerning  the   condition  and   extent   of  the  apple   crop   in  any  one 
season,    to   encourage  high  grade  fn,'it  and  good  packing,   and  to 
spread  advertising.      They  do   not  believe  in  doing  awaj    with   the 
middlemen,   naturally,   but  want   better  relations  between  the 
growers,   the   cosEiission  r^ereliants  and  the  retailers.      This   lack 
of  Imrmonious   relations  helps   to   create  uncertainty  as   to   con- 
ditions and   intensifies    the   gambling  feature  of   the   business. 
Crop  reporting   from  growers'    and  dealers'    organizations   show 
direct  antipathy  of  view  point.      Bo   neither  report   is   believed. 
What    is   needed  is   unbiased  government  reports  from  each  state. 
Also   if  growers  would    stick   to  dealers  and  dealers   to  growers 
a  feeling   of  mutual  interest  would  arise.      It   is   better  to   have 
a  steady  increasing  market  and  low  jjrices   than  an  irregular 
market  with  extremes   of  prices.      Co-operation  all  around  is   the 


-14- 

way  to  gain  this  end  which   the  grower  and  buyer  are  seeking. 
■^  The  principal  apple  markets  are   New  York,  Boston, 
Chicago,  and  Philadelphia.      The   receipts   for   the  year   ending 
June  30,    1912  at  Boeton  were   285,663  "bhl.  ,   at   New  York 
2,485,176  hbl.    and  for  Chicago   for  the  year   ending  June   30, 
1913,   1,166,000  bhl.        The  Northwest  and   Idaho  and  Colorado 
ship  perhaps  30.Z5/O  of   their  apples  East  as  first   class.      The 
absolutely  scientific  orchards   ship  85    -   9Qf>  of  their   crop. 
The   rest   is   sold  locally  and  alonp'  the  Pacific  Coast.      It  cost 
on  an  average,  from  ¥ashinp:ton  and  Oregon   to   New  York,   |.50 
per   50   lb.    box  in  a  carload.      T^'rom  Virginia    to  IJew  York  about 
i.lB   per   100  lbs.      Thus   the   cost  plus   the  freight   per  box  is 
approximately  as  high  as   the  average  price  of   the   eastern  apple 
per  barrel  within  200  miles   of   its  markets.      The   average  price 
received  by  the  Western  grower  for   the   season  1913-14  was  frora 
ll.OO  to   |1.50  a  box.      The  coraaission  men  usually  get   from 
10  -  25/^  and   the  shipper   10^.      Most    of  these  apples  sell  for 
1-3.00  up  a  box.      The  reason  the  retailer  gets   this    hit^h  price 
is   because  he   has   to   take   the  risk   of  the  apples   spoiling   on 
his   hands,   he   has    to  buy  and  usually  sell   in  small  quantities, 
and  he  has    to   deliver.      The  retailers   need  to   be   educated  more 
as   to   the  varieties,   seasons,    storage  and  ho^   to   sell  more. 
The  market   in  Hew  York   is   not   located  in  one  place.      The  fruit 
arrives  at   two   different  freight  terminals.      At  Water   Street   it 
is   sold  directly  from  the  car.      A  few  barrels  are  taken   out   by 
the   commission  men   to  v/hom  the   lot   is   assigned  and  are  examined 
by  the  buyers  from  the  retail  houses,   hotels,   etc.      After  the 


-15- 

different   lots   have   "been   looked   over   the   auction  opens   around 
one   comrnission  man's   stand,   continues  until  his  lot   is   sold, 
and   then  moves  on   to   the   next.      At   the   other   tenrdnal   the   fruit 
is    taken   to   the   salesrooms   of    the   coairuission  men.      This    lack 
of  a   central  unloading  and   sellinpf  place  is   one   of   the   chief 
drawbacks   of   the  Ifew  York  market. 

Our   exports  in  apples  are  relatively  small  compared 
with  the  amount   produced.      Out    of  30   or   40  million  barrels, 
one   or   two  million  is  a  small  part.      But   even  such  a  small 
foreign  insrket  asay  greatly  relieve   horae  pressvire  and   serve   as 
a    "safety  valve"   for  market  conditions.      To   Canada  in  1913   we 
sent  320,357  b&rrels  ,  which  required  a  duty   of   |127,890.40. 

The  question  which    is   being  greatly  agitated  at 
present   is   the  future   of  the  Apple   Industry.     Whether  with 
these  extensive  plantings  and   scientific  methods   the  market 
will  not  be      swamped  and   the   industry  no  longer  be  a  paying 
one.      It  vas   estimated  that   in   1910   there  was  an   increase  in 
the   number  of   trees   not    of  bearing  age   which  would  increase  in 
a  few  yesLTS   the   number   of   those  bearing   44^,  and  that   in  5 
^/ears   the   crop  will  probably  be   three   times    that    of  1912   or 
300,000,000  bushels.      But   the   number  of   trees   is   decreasing 
almost  as  fast  as   the  new  ones  are   increasing.      Also   some  say 
that   if   one-third  of   the  present  plantings   become   coHsaercial 
they  will  do   better   than  plantings   have   ever  done   before.      But  , 
granting   that  better  plantings  are  beinp;  made  and  this  high 
figure   is  reached,   the   outlook  is  a  bright   one.      ]?irst ,   our 
population  is   increasing  faster  than  the   output   of  apples. 


-16- 

Also  at  present  46?!'  of  it  is  a  city  population.  These  people 
can  and  ought  to  eat  a  great  many  more  apples  than  they  do  at 
present.  With  the  new  Parcel  Post  system  saniples  can  be  dis- 
tributed, and  also  boxes  which  are  ordered,  thus  doinp;  away 
with  the  retailer.  For  this,  extended  and  intelligent  adver- 
tising  is   needed  and  luust  come   in   the   near  future. 

Then   our  foreign  market   is   broadening.      Panama  Canal 
will  greatly  affect   the  development   of  this,  for  water    trans- 
portation is  cheaper   than  rail.      The   eastern  market  will   be 
left  free   for   the  eastern  growers  and  the  western  apples  will 
be   shipped  along   the  Gulf  and   to  Europe  and  South  Aiiie^rica. 
Already  one   shipment  has  been  sent,   15,000  boxes,   at  great   ex- 
pense ,  via  Ifew  York  ,'^ London  aftd.  Buenos  Ayres.      Thus  a  deiriand 
is  being  established   in  fiTf^entine  which  can  be   supplied  as   soon 
as    the   canal   is    opened.      The  "Flast  has  no   line  of  boasts  going 
to  Argentine    th8.t   have  refrifzerator  accojTjinodati ons  worth  speak- 
i  ng    of . 

The  market   demands  a  cheaper  apple.      The  average 
fairdly  cannot  afford  fanc}'-  grades.      By  riaking   them  cheaper 
the   grower  can   increase   the   deiaand  for  his   supply.      lie  can  make 
prices   cheaper  by  iraproved  methods   and  more   use   of  machinery, 
by  mors  utilization   of   the  waste   fruit  for  canning   and  drying, 
but   chiefly  by  concerted  action   whereby  they  can   get   properly 
in  touch  irith  the   consumers.      !?very   housewife   should   learn   the 
g-ood   points   of    the  many  varieties,   and   know  when    to    buy   them 
at   their  best.      The  retailers  must   learn  when   to   put   thsm  on 


-17- 

sale .   Go-operation  all  around  is  the  way  to  increase  the 
demand  which  the  producer  wants,  and  to  loiA'er  the  price  which 
the  constuner  ivants. 


^cr^>^^5v^.^^  ^V.c3v^cv^,Xo   ^^\/troi-. 


Simmons  College,  Boston, 
May  7 ,  1914 . 


COMMONWEALTH   OF   MASSACHUSETTS 

MASSACHUSETTS  AGRICULTURAL  COLLEGE 

DIVISION   OF   HORTICULTURE 

FRANK  A.  WAUGH 

Head  of  Division  of  Horticulture 
Professor  of  La7idscape  Gardening 

Amherst,  Mass.,  May  14,  1914, 


Mr,  Charles  R.  Green, 
Library, 

Lear  Green: 

Of    course    I    don't   keep   up   a  general 

correspondence   with   so  many   girls    as  you  do, 

but    one   of  then  in   Simmons  *^ollege  Avho   has   been 

•writing  me   some   interesting   things    lately  has 

sent  me  a  copy  of  her  thesis  in  economics.   She 

makes  me  a  present  of  this  and  I  know  of  no 

better  way  to  handle  it  than  to  send  it  on  to 

you.    .  If   you  don't   "/ant    it   you  may    send    it   back. 

Very   truly  yours, 


